How Binance’s ‘Liquidity Flywheel’ Anchored a $34 Trillion Market
Binance’s Liquidity Flywheel Anchors $34T Crypto Market
In 2025, Binance — the world’s largest cryptocurrency exchange — reported an astonishing $34 trillion in total trading volume , a figure that underscores its central role in global digital-asset markets. Analysts and industry observers attribute much of this success to what Binance and researchers term the “ liquidity flywheel ” : a self‑reinforcing cycle of deep liquidity, high participation, and expanding network effects that has made the exchange a central hub of crypto trading and discovery. What Is a Liquidity Flywheel? A flywheel in business describes a mechanism that feeds on its own momentum: the more it spins, the more force it accumulates. In Binance’s case: Deep order books — where buyers and sellers are plentiful at many price levels — attract larger and more frequent trades . Tight spreads and reliable execution reduce trading friction, making Binance more attractive than competitors. More traders and capital further condense liquidity, spawning a virtuous cycle that reinforces i…
